Because Expected Inflation Is Typically Positive, We Know That

question 4

Multiple Choice

Because expected inflation is typically positive, we know that:

• A) the nominal interest rate is generally less than the real interest rate.
• B) the real interest rate rate is approximately equal to zero.
• C) the nominal interest can be negative.
• D) the real interest rate is generally less than the nominal interest rate.
• E) the nominal and real interest rates are generally equal.

---

Definitions:

Short-term Storage

A cognitive function where small amounts of information are temporarily held for a limited duration, often referred to as short-term memory.

Visual Information

Data perceived through the sense of sight, crucial for learning, navigation, and understanding of our environment.

Semantic Information

Information related to the meanings of words and sentences, often discussed in the context of understanding language and communication.

Long-term Storage

The phase of memory where information is retained for extended periods, potentially for a lifetime; part of the human memory model.